Undoubtedly the global market is under continuous change. Oil prices in the market are down to historic lows, there is a great fall in China’s growth but India has failed to overcome both of these factors. This makes the stock market highly unpredictable, while weren’t between the full-blown recessions – yet we are facing the bearish market.
The real estate market after underperforming for the last few years is now recovering with great speed; however, still, the sector holds large unsold inventory in different cities. The market is now discounting the benefit arising out of improving macroeconomic conditions. Dicey it may sound but if you want to invest money while playing safe, then the real estate can be a safer and favourable option for you.
Here are a few tips on how you can profit from real estate in today’s bearish market.
Search for a Good Bargain: When there is an excess of supply in the market that is over the demand, the prices tend to fall – says economics. Same is happening in the estate market, the oversupply of properties is shifting the bargaining power in the hand of the buyers. Builders sitting over the large unsold stock unwillingly sell them at low rates offered by the buyers. Thus in the past few years, there has been a falling trend in the market. Thus, it is important for a real estate investor in the current climate to carry out a careful analysis of the market and strike the best possible bargain.
Lucrative Home Loans: During the recession, the central bank adopts the expansionary monetary policy under which it lowers the current rate of interest. Thus the commercial banks are able to offer much more attractive rates when it comes to home loans. Thus, it is possible to get a home loan at competitive rates in the current environment. One must use this to take advantage of purchasing for the lowest possible interest rates.
Selling Power: While the recession is on, it invites many investors to invest in the market as the prices are falling. This attracts a majority of the crowd, but they forget to keep in mind the future growth potential of the property and invest where the growth potential is very low which leaves them in depression. Thus one should keep in mind the future prospect of the property to maximise his profit.
Attractive discounts and offers: Many builders and dealers are adopting new ways to offload their large unsold inventory. One of the ways is to provide the client with new and attractive offers and discounts. One must use this opportunity to its best to further sweeten the deal.
Check for Fraud: During the recession, most of the builders and dealers are suffering losses. This can make few of them desperate to earn money and resort to f Thus, it is always important to check and verify the identity and credentials of the builder, go over project documents and agreements with great detail and take the help of lawyers to confirm their authenticity.
Keep these pointers in mind and enjoy profit even in a recession also.